Alset AI Announces Closing of Second Tranche of Loan Transaction of up to $3 Million

• The most recent news (April 24, 2026) confirms the closing of the second tranche of a $3 million loan facility with insider Randy Gilling.
• Amount advanced in this specific tranche is $195,000, bringing total funds to date under the transaction to $695,000.
• This follows the first tranche closed on February 24, 2026 ($500,000).
• The original plan announced in February indicated Tranche 2 would be $500,000 within 2–7 days of Tranche 1; this closing occurred two months later with less than half the planned amount.
• Warrants issued: 1,300,000 non-transferable warrants at $0.15 exercise price, expiring in three years.
• The company continues to trade on TSX Venture (GPUS) and OTCQB (GPUSF) following a 10-for-1 reverse stock split announced in March 2026.
• Historical context shows Lyken.AI secured a $250,000 cloud compute contract in February with potential for $1 million annualized revenue.

• Financing Execution Miss: The delay and reduced size of the second tranche ($195k vs planned $500k) signal liquidity stress or lender hesitation to fund at full speed, contradicting earlier optimistic timelines.
• Share Price Erosion: Despite financing news, the stock has declined approximately 82% from its May 2025 high of $0.17 to the current $0.03 range, indicating market skepticism regarding execution and revenue realization.
• Reverse Split Stigma: The March 2026 reverse split (10-for-1) is typically a defensive measure for low-priced stocks facing delisting risks or lack of institutional interest; it often suppresses retail participation and signals distress rather than growth.
• Revenue vs. Burn: A $250,000 initial contract is insufficient to sustain the capital-intensive cloud compute business without continuous financing, raising questions about long-term cash flow sustainability.
• Insider Concentration Risk: Randy Gilling holds >10% of shares and is now a major lender; while this shows confidence, it creates high concentration risk where one insider controls significant equity and debt influence.

• Company: Alset AI Ventures Inc. (TSXV: GPUS / OTCQB: GPUSF).
• Flagship Project: Lyken.AI (operated by subsidiary Cedarcross Technologies Inc.), a cloud compute business providing end-to-end AI services, GPU infrastructure, and software deployment.
• Partnerships: Accepted into Dell Technologies Canada Partner Program; vendor approved with a leading multinational technology/telecom company.
• Revenue Model: Cloud compute services billed on usage or contract basis; targeting recurring revenue from enterprise clients.